Tax Management Global Market Opportunities and Strategies to 2032

This report describes and explains the tax management market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The global tax management market reached a value of nearly $18.6 billion in 2022, having grown at a compound annual growth rate (CAGR) of 7.7% since 2017. The market is expected to grow from $18.6 billion in 2022 to $32.9 billion in 2027 at a rate of 12.1%. The market is then expected to grow at a CAGR of 12.4% from 2027 and reach $59.0 billion in 2032.

Growth in the historic period resulted from strong economic growth in emerging markets, the rise in disposable income, the increasing complexity of tax codes, and the increase in digital financial transactions. Factors that negatively affected growth in the historic period were the high cost of tax management solutions, the COVID-19 pandemic, and the rise in unemployment rates.

Going forward, the increasing government support, rapid urbanization, the increasing population, the increase in adoption of digital channels, and the increase in adoption of cloud-based approaches will drive the market. Factors that could hinder the growth of the tax management market in the future the Russia-Ukraine war and the rise in interest rates.

The tax management market is segmented by component into software and services. The software market was the largest segment of the tax management market segmented by component, accounting for 67.9% of the total in 2022. Going forward, the services tax management segment is expected to be the fastest growing segment in the tax management market segmented by component, at a CAGR of 13.0% during 2022-2027.

The tax management market is segmented by deployment mode into cloud and on-premises. The on-premises market was the largest segment of the tax management market segmented by deployment mode, accounting for 51.7% of the total in 2022. Going forward, the cloud segment is expected to be the fastest growing segment in the tax management market segmented by deployment mode, at a CAGR of 13.3% during 2022-2027.

The tax management market is segmented by vertical into banking financial services and insurance (BFSI), information technology (IT) and telecom, manufacturing, energy and utilities, retail, healthcare and life sciences, media and entertainment and other verticals. The banking financial services and insurance (BFSI) market was the largest segment of the tax management market segmented by vertical, accounting for 25.5% of the total in 2022. Going forward, the information technology (IT) And telecom segment is expected to be the fastest growing segment in the tax management market segmented by vertical, at a CAGR of 13.2% during 2022-2027.

The tax management market is segmented by organization size into small and medium sized enterprises (SMEs) and large enterprises. The large enterprises market was the largest segment of the tax management market segmented by organization size, accounting for 71.5% of the total in 2022. Going forward, the large enterprises segment is expected to be the fastest growing segment in the tax management market segmented by organization size, at a CAGR of 12.8% during 2022-2027.

North America was the largest region in the tax management market, accounting for 36.6% of the total in 2022. It was followed by Asia Pacific, and then the other regions. Going forward, the fastest-growing regions in the tax management market will be Asia Pacific and North America where growth will be at CAGRs of 14.6% and 11.7% respectively. These will be followed by Western Europe and eastern Europe where the markets are expected to grow at CAGRs of11.2% and 9.9% respectively.

The global tax management market is concentrated, and the market has a small number of large players. The top ten competitors in the market made up 60.1% of the total market in 2021. The market fragmentation can be attributed to the presence of a large number of players in different geographies. Intuit was the largest competitor with 19.02% share of the market, followed by H&R Block Inc with 15.93%, Wolters Kluwer with 5.47%, Thomson Reuters with 3.93%, SAP with 3.28%, Avantax, Inc with 3.03%, Vertex Inc with 2.61%, Avalara with 2.57%, Sovos Compliance with 2.16% and Automatic Data Processing Inc. with 2.02%.

The top opportunities in the tax management market segmented by component will arise in the software segment, which will gain $9.3 billion of global annual sales by 2027. The top opportunities in the tax management market segmented by deployment mode will arise in the cloud segment, which will gain $7.8 billion of global annual sales by 2027. The top opportunities in the tax management market segmented by vertical will arise in the banking financial services and insurance (BFSI) segment, which will gain $3.8 billion of global annual sales by 2027. The top opportunities in the tax management market segmented by organization size will arise in the large enterprises segment, which will gain $11.0 billion of global annual sales by 2027. The tax management market size will gain the most in the USA at $3.4 billion.

Market-trend-based strategies for the tax management market include increasing investments in artificial intelligence, focusing on digital business solutions, investing in innovative technologies, focusing on cloud-based tax return solutions to improve workflow, and focusing on developing client self-service platforms.

Player-adopted strategies in the tax management market include focusing on new product launches and investing in strategic collaborations and partnerships to enhance operational capabilities.

To take advantage of the opportunities, the recommends the tax management companies to focus on artificial intelligence, focus on technology advancements, focus on new product launches, focus on client self-service platforms, increase focus on cloud-based solutions, expand in emerging markets, continue to focus on developed markets, focus on strategic mergers and acquisitions, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, continue to target fast-growing end-use verticals, and focus on large enterprises.